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moZamBiQue<br />

An irresponsible administration<br />

Human Rights League<br />

Public Integrity Centre<br />

Informal Justice Support Centre<br />

Custódio Duma, Coordinator<br />

Mozambique has considerable natural resources<br />

in the form <strong>of</strong> natural gas, vegetal coal, aluminium,<br />

silver, more than 2,500 kilometres <strong>of</strong> coastline, rivers,<br />

forests, wood and a great potential for tourism. 1<br />

However there is little chance <strong>of</strong> this wealth being<br />

used to help reduce poverty, first and foremost because<br />

the country is pursuing an irresponsible and<br />

unsustainable policy <strong>of</strong> promoting mega-projects.<br />

Some studies go so far as to suggest the Government<br />

is incapable <strong>of</strong> administering these natural<br />

resources or <strong>of</strong> managing exploitation concessions<br />

in a way that benefits the country’s economy or the<br />

population at large, and this means it is missing opportunities<br />

to promote national development. 2 Since<br />

the end <strong>of</strong> last year economists, civil society organizations,<br />

and even the Commission <strong>of</strong> Catholic Bishops<br />

<strong>of</strong> Mozambique have been trying to persuade<br />

the Government to reverse its policy <strong>of</strong> granting tax<br />

exemptions to mega-projects while the tax pressure<br />

on the general public is increasing.<br />

A November 2009 review by the African Peer Review<br />

Mechanism 3 reported that Mozambique’s public<br />

administration is very politicized and that it is difficult<br />

to distinguish between the State and Frelimo, the party<br />

in power since independence in 1975. Not only is this<br />

combination <strong>of</strong> party and State a discriminatory way to<br />

manage the public sector, but it also undermines public<br />

policy planning and means that all socio-economic<br />

development processes are tied to politics.<br />

Moreover, with its vacuous pronouncements<br />

and failed measures, the Government has shown<br />

that it is incapable not only <strong>of</strong> combating poverty and<br />

social inequalities but also <strong>of</strong> formulating a convincing<br />

plan to improve people’s lives.<br />

1 Maps <strong>of</strong> the World, “Mozambique Natural Resources,”<br />

.<br />

2 C. N. Castel-Branco, “O que é que a ITIE faz bem e o que é<br />

que não faz? Uma proposta de agenda de trabalho sobre<br />

os recursos naturais em Moçambique,” 25 February 2011,<br />

.<br />

3 African Peer Review Mechanism, Country Review Report:<br />

Mozambique, APRM Country Review Report No. 11, June 2009,<br />

.<br />

The Government has shown it is not only unable to combat poverty and social inequalities but also incapable <strong>of</strong><br />

formulating a convincing plan to improve the population’s quality <strong>of</strong> life. The benefits <strong>of</strong> economic growth have<br />

not reached the people who need them most and the poor are getting poorer. The current economic model is<br />

clearly unsustainable and the Government is failing to administer the country’s natural resources or manage<br />

exploitation concessions so that these benefit the population as a whole. Some progress has been made in the<br />

fight against corruption but this is still one <strong>of</strong> the main obstacles to increasing people’s well-being.<br />

Basic Capabilities Index (BCI)<br />

BCI = 68<br />

Births attended<br />

55<br />

100<br />

0<br />

51<br />

Children reaching<br />

5th grade<br />

100 100<br />

National reports 142 <strong>Social</strong> <strong>Watch</strong><br />

Surviving under-5<br />

False growth<br />

The International Monetary Fund (IMF) reported in<br />

April that Mozambique’s economic growth in 2010<br />

was among the highest in the region 4 and predicted<br />

a real GDP rise <strong>of</strong> 7.25% in 2011 and 8% in the<br />

medium term. The problem is that the economic<br />

benefits <strong>of</strong> this expansion do not help the poor, who<br />

continue to get poorer. The minimum monthly wage<br />

is MZN 2,700 (USD 90), which according to trade<br />

unions and workers’ organizations is only enough<br />

to satisfy 35% <strong>of</strong> a family’s basic needs. 5 A study by<br />

PricewaterhouseCoopers showed that in 2011 pay<br />

increased by only 9.8% while inflation was 15%, so<br />

in fact wages have fallen by 5.2%.<br />

When we consider that more than half <strong>of</strong> Mozambique’s<br />

general budget is financed by donor<br />

countries and 80% <strong>of</strong> its investment is from foreign<br />

sources, it is no surprise that many economists believe<br />

the country’s economic growth is false. 6 None<br />

<strong>of</strong> the main factors in the economy – such as the balance<br />

<strong>of</strong> payments, the State budget, investments or<br />

control <strong>of</strong> inflation – are determined by the country’s<br />

wealth or are functions <strong>of</strong> internal equilibrium, the<br />

domestic market or national production. They are all<br />

based on foreign resources.<br />

4 MacauHub, “IMF says Mozambican economy post growth<br />

<strong>of</strong> 6.5 pct in 2010,” 11 April 2011, .<br />

5 Empresas e Negócios, “Salários mínimos são marca<br />

da pobreza em Moçambique,” 26 March 2011,<br />

.<br />

6 Canalmoz, “Estabilidade económica de Moçambique é falsa”,<br />

interview with João Mosca, 12 April 2011, .<br />

86<br />

Gender Equity Index (GEI)<br />

GEI = 58<br />

Education<br />

100<br />

Empowerment<br />

59<br />

100 68 100<br />

Economic activity<br />

The high inflation rate may be a direct consequence<br />

<strong>of</strong> the rise in international prices for food and<br />

crude oil, but it is clear that Mozambique is unable to<br />

exploit its potential and produce foodstuffs and other<br />

products that could be exported and help reduce dependence<br />

on foreign aid. The country’s economic ills<br />

can be traced above all to its growth models, which<br />

are unsustainable or unrealistic.<br />

The fight against corruption<br />

Transparency International reports that Mozambique<br />

has made some progress against corruption,<br />

moving from 130th out <strong>of</strong> 178 countries in 2009 to<br />

116th in 2010. 7 Corruption is still one <strong>of</strong> the main<br />

obstacles to development however, compounded<br />

by a combination <strong>of</strong> other related factors including<br />

weaknesses in management procedures, lack <strong>of</strong><br />

transparency in public administration, impunity for<br />

wrongdoers and obsolete legislation in this area.<br />

Mozambique’s ranking on the corruption scale<br />

has improved because two important cases involving<br />

the embezzlement <strong>of</strong> public funds have come before<br />

the courts. These involved two ex-ministers (one <strong>of</strong><br />

the Interior and the other <strong>of</strong> Transport and Communications)<br />

and also a president <strong>of</strong> the Council for the Administration<br />

<strong>of</strong> Airports, with the total loss amounting<br />

to around USD 10 million. But even so, the final ruling<br />

in these cases 8 demonstrated how much the judiciary<br />

is manipulated by the political arm <strong>of</strong> government.<br />

7 Transparency International, “Corruption Perceptions Index<br />

2010 Results,” .<br />

8 The Boston Globe, “Sentence Reduced in Mozambican<br />

Corruption Case,” (24 May 2011), .<br />

0<br />

48

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